March 19th, 2019 Mortgage Industry Update

The Bank of Canada announced on March 6th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada might either keep rates still for 2019, or the potential for one further increase.

Additionally this week:– CMHC: 3.8% of all residential properties in Toronto have at least one non-resident owner, with this number falling slightly to 3.3% province-wide. Proportions highest for condominiums, with 7.6% of such properties in Toronto. Numbers are 7.6% overall for Vancouver, 6.2% for B.C.

– Redfin firm Walk Score’s inaugural Transit Score rankings put Toronto, Vancouver, and Montreal at the top of the list of big cities with populations of 300K+. Toronto’s score of 78 and Vancouver’s 74 puts them above several major US cities including Boston (72), and DC (71).

– Altus Group has estimated that 210,000 new homes and 300 million sq. ft. of new commercial/industrial space across the country will still begin construction in 2019.

– CMHC: Seasonally adjusted annual rate of housing starts fell to 173,153 units in February compared with 206,809 units in January. Down 29% from 2018, 16% from January. Economists had expected an annual pace of 205,000.

– Statistics Canada: Value of residential building permits issued by Canadian municipalities rose in January. Up 1.6% month-over-month increase in permit value, total of $5.4B with the single-family sector up 3.1% to $2.0B and the multifamily sector up 0.7% to $3.3B.

– Juwai: Chinese enquiries into Canadian properties increased 8% last year compared to 2017. Vancouver enquires down 2.8%, down 10.3% in Toronto. However, enquiries up 394% in Halifax, 234.4% in Calgary, 35.7% in Montreal, 32.5% in Ottawa.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.